The Nigerian Civil Aviation Authority (NCAA) has announced that the recently introduced aircraft leasing policy is already yielding positive results for the nation’s aviation sector.
Speaking in Uyo during a retreat for the Directorate of Air Transport Regulation (DATR), NCAA’s Director of Air Transport Regulation, Mrs. Olayinka Babaoye-Iriobe, said the policy has started easing fleet challenges for local airlines, leading to fewer flight cancellations.
The development follows the signing of key international aviation protocols by the Minister of Aviation and Aerospace Development, Festus Keyamo, in 2023.
In September, Keyamo endorsed Nigeria’s commitment to the Cape Town Convention (CTC), followed by the October implementation of the Irrevocable De-registration and Export Request Authorisation (IDERA).
“These reforms have made aircraft leasing more attractive and affordable for Nigerian operators, and we are already seeing the benefits,” Babaoye-Iriobe said.
She added that the reforms have also improved Nigeria’s standing on the CTC compliance index, which was previously below 49 per cent, and will contribute to the long-term sustainability of the aviation sector.
She said, “The Minister of Aviation and Aerospace Development, Festus Kayamo has looked at the Cape Town Convention to try and revisit it. And then to sign up and implement the IDERA which removed Nigeria from the Cape Town Convention low index.
“Since he signed the IDERA and started implementing it, our CTC index skyrocketed. When it was on 49, it was difficult for our airline to access the leasing company. So they were leasing aircraft at a very high rate. All those things impact fares.
“We have implemented it with one of our airlines. IDERA will make it easy because before the IDERA implementation, some of our airlines will lease aircraft and when it is time, they might not be able to sustain payment of the lease rental”.
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She further explained, “When the lessor wants to re-take the plane from them, they will run to the court to get an injunction to hold it and that was painting Nigeria in a bad light. Now, he has removed that. If there’s a default from the lessee, the lessor can come in and take the aircraft immediately, no questions asked, because we in the NCAA will release it.
“So because the minister has done that, it has made Nigeria more amiable to the leasing company. At times, when you do certain things, the effect is not felt immediately, but it will eventually show so that our operators will be able to access those aircraft. Once they do, it will help this issue of lack of capacity because what is happening now is a lack of capacity.”
She also hinted that DATR’s evaluation process shows that Nigerian airlines are viable and financially sound.
Babaoye-Iriobe also stated that the process of acquiring airline licences and renewal has become easy and accessible as long as the airline operator meets all the required regulations and requirements.
“What we do as a directorate is to evaluate and make sure they are still financially sound. You know, if they are not financially sound, then they will be cutting corners, and then it will impact safety,” she said.
In collaboration with the Directorate of Finance and the Directorate of Air Transport, we visit the airline to do an economic and financial audit of the airline. In all these cases, we now report back to the airline, identifying or alerting them to areas that we perceive to be weaknesses so that they can quickly rectify them. Once those are rectified, it will help safety.”
